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7th November 2014
The Telegraph's Anna White reports on the luxury London property market and comments that as increasing numbers of cranes dot exclusive districts, there are fears that the global economic situation could threaten London’s appeal. The property industry insists that there is an existing queue of high net- worth individuals ready to snap up new developments in Mayfair and other prime areas off-plan. However, Deutsche Bank says that the London property market could “unravel”. One of its biggest concerns is the knock-on effect of the U.S. stopping its quantitative easing programme last week. Simon French, chief UK economist at Panmure Gordon, cites issues closer to home. “We are seeing high-end residential come off the boil as talk of clamping down on immigration, and a mansion tax, is sending warning signals that the UK is changing as a place to do business,” he says. Meanwhile, Scott Corfe, chief economist at the CEBR, is also bearish about the luxury London market and its ambitious pipeline of developments. “We expect demand to fall back at the top end of the [London housing] market,” he says.
7th November 2014
New figures from Knight Frank suggest that house prices in London's most exclusive areas have failed to grow for the first time in four years, after surging by 40% over the period. Knight Frank expects no growth in central London prices next year, but says that could change if the prospect of a mansion tax recedes after the election..
The Times (03/12/14)
7th November 2014
Nigel Wilson, chief executive of Legal & General, writing in the Mail, says that he wants a tax system which is workable and fair. He argues that a mansion tax is neither. It won't help the housing market, and it won't help the deficit, he says. The problem with housing isn't taxation – it is supply and demand. He points out that decades of inflation means 70% of the £2m "mansions" in London are actually flats or terrace houses. We need to build more homes: 200,000 annually. He explains that, a successful housing market needs people to move and the mansion tax threat is already slowing top-end sales - with repercussions down the chain. He suggests a better way for politicians to tax property would be to reform the domestic rates, put additional high-value bands in place, and make second homes pay a premium.
Daily Mail (03/11/14)
7th November 2014
London has been the boom town for years, but house prices in the southeast are now rising even faster than in the capital. This trend is set to continue for years, as central London faces the possibility of a mansion tax curbing house prices that, says the Times. Last month, a study by Oxford Economics and Rightmove found that prices in southeast England would rise 37% by 2019, compared with growth of only 33% in London.
7th November 2014
In an open letter to the Evening Standard, more than 30 leading figures have called on the Government to give London a full range of property tax powers. They also demand the capital have control over health, childcare, schooling and the criminal justice system. The letter goes on to say that there are no guarantees that London will remain a city superpower if these challenges are not met.
Evening Standard (04/11/14)
7th Novemberr 2014
Canning Town is set to become a hot spot for first-time buyers in the capital, with extensive redevelopments planned in the area. In September, Boris Johnson committed to building 1,000 rental homes for young Londoners and the average property price comes in well below the £500,000 London average, at £342,435.
Evening Standard (06/11/14)